No Ratio and No Income DSCR Loans
A no ratio DSCR loan lets you buy or refinance a rental property without stating personal income or a job, and in some cases without the rent having to cover the payment. I do these for investment properties in 37 states, and some of my lenders also offer an interest only payment option. Not everyone will qualify.
What is a no ratio mortgage?
A regular DSCR loan compares the property's rent to its payment. A no ratio loan drops that ratio test, so the deal can work even when rent today is lower than the payment. You still need credit, a down payment and reserves, and the loan is for investment property only.
What is a no income DSCR loan?
No income means no tax returns, no W-2s, no pay stubs and no employment section on the application. The lender looks at the property, your credit and your assets. It suits investors who are between jobs, retired, or just don't want their personal income in the file.
Can I get an interest only DSCR loan?
Yes, some DSCR programs I work with offer an interest only period. That lowers the early payment, which can help the rent cover it. After the interest only period the payment rises to include principal, so I'll show you both payments before you decide.
Where can I get one?
Investment properties only, in 37 states. I don't do DSCR in California or Rhode Island, Montana is LLC only, and New Hampshire is investment only like everywhere else.
Frequently asked questions
Can I get a DSCR loan with no income?
Yes. A DSCR loan qualifies on the property, not your paycheck, so there's no personal income on the application. Not everyone will qualify.
What is a no ratio DSCR loan?
It's a DSCR loan where the rent doesn't have to cover the payment. The lender leans harder on credit, down payment and reserves instead.
Do no ratio loans need a bigger down payment?
Usually yes. Because the rent test is gone, expect a larger down payment and more reserves than a standard DSCR loan.
Is an interest only DSCR loan a good idea?
It can be when cash flow is tight early on. The payment goes up later, so it works best when you have a plan for that.
Can I live in a property with a no ratio DSCR loan?
No. These loans are for investment and rental properties only.